Former Apple CEO Backs New Indian Smartphone Launch

Details: James Barton; Category: Devices & Platforms; 22 April 2014; 6405 views

Former Apple CEO John Sculley is backing the launch a new range of smartphones in India. Obi Mobiles plans to invest US$20 million to enter the market during 2014.

Headquartered in Gurgaon near New Delhi, the company is setting up a design centre and a supply chain in key centres across India.

Obi Mobiles is aiming for the mid-price sector of the market, and has announced a price range between US$80-130. This places it well below Apple's smartphones in terms of cost but well above the price of the recently announced Firefox low cost smartphone for emerging markets.

"India leads in mobile phone penetration. However owing to the delay in implementation of 3G services and high smartphone prices, the smartphone share in India is only 20%, leaving larger part of the ground with opportunities yet to be tapped," commented Sculley. "The scenario becomes a favourable and attractive chance for us to launch Obi Mobiles and offer the best of the smartphone with an apt pricing model."

Sculley was CEO of Apple for 10 years, from 1983-93 and is famous for firing Steve Jobs, something he has recently admitted he regrets. Sculley's Singapore based venture capital company Inflexion Point is Obi Mobiles' backer.

Competition is expected to be most intense in the mid-price sector in the coming years with all the major suppliers including Samsung, Nokia and Sony offering well featured devices at this price point. Vendors such as Huawei and ZTE who already enjoy strong relations with service providers are also determined to make major in-roads into the market.

Obi Mobiles' CEO Ajay Sharma, previously with Micromax and HTC said: "We feel that it is a good time to enter this space considering the advent of 3G and 4G services, increasing affordable mobile internet plans, rising popularity of internet based communications and social media platforms coupled with availability of local content."

It is not yet clear whether the devices will will be based on the Android operating system or if they may eventually be manufactured in India. The first Obi Mobiles devices are expected to reach the market as early as May 2014.